China becomes leading provider of clean technology to developing nations

China exported clean technologies and investments totaling nearly 118 billion euros to developing countries last year.

This contribution nearly matches the total amount of 123 billion euros that all wealthy nations collectively provided in grants, loans, and private funds to fight climate change in 2024. While wealthy nations often provide climate financing through loans that generate interest profits, China uses massive subsidies to lower prices for green energy products.

This strategy allows developing countries to adopt affordable technology while helping China dominate global markets for solar modules, wind turbines, and batteries. The scale of these exports has a measurable impact on global carbon levels. Chinese clean technology exports avoid approximately 257 million tons of carbon dioxide emissions annually, a figure equivalent to the yearly emissions of France. In the current year, these exports are projected to save 337 million tons of carbon dioxide.

China's Ministry of Commerce stated that its wind and solar exports reduced global carbon dioxide emissions by about 4.1 billion tons over the last five years, which represents roughly 80 percent of the total annual emissions produced by the United States. Despite its role in spreading green technology, China remains the world's largest greenhouse gas emitter, responsible for about one third of all global carbon dioxide emissions.

The country still relies on coal to provide more than half of its electricity. Analysts suggest that Beijing might hesitate to take a primary leadership role in climate negotiations without the United States as a geopolitical counterweight. Meanwhile, some countries like Ethiopia have banned the import of internal combustion engine vehicles, and Pakistan received 17 gigawatts of Chinese solar installations, a volume equal to Germany's installations in the same year.